Do you know how third-party insurance works? So you are in the right place. In today’s article, I’m going to its operation and everything else you need to know about it.
When taking out insurance, some coverages are presented at the time of quotation. One of the most famous is car insurance for third parties. This type of geico insurance has a name: RCF-V (Optional Vehicle Liability). Check below the main questions about it.
What is third-party insurance?
It is a protection against crashes that you can give to other cars. Car coverage for third parties is one of the most important when purchasing insurance – it is so important that, if you did not want to purchase any other option, you can only purchase car insurance for third parties.
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How does third-party car insurance work?
Third-party car insurance indemnifies, within the amount stipulated in the policy, the damage you have caused to another car or even to other people, such as pedestrians. With this insurance it is possible to trigger the insurance company to pay for the repair of that car or the indemnity, saving you from unexpected expenses.
Imagine the following situation: you have a slightly older car, the financial situation is not that great and, suddenly, you crash your humble car into a brand new Ferrari, valued at almost R$ 1 million. No matter how small the crash, repairing this machine is going to be very expensive. And that’s where third-party insurance comes in. But, in addition to this issue, many people still want to know how car insurance for third parties works when it encompasses other categories, such as Personal or Bodily Injury or Moral Damages.
What does third-party insurance cover?
RCF-V is defined by Susep Circular 27/84 and Circular 106/99. The documents contain some of the guarantees such as:
- Loading and Unloading;
- Contamination and/or Pollution;
- Bodily Injury;
- Materials damage;
- Moral damages;
- Towing Vehicles;
- Trailers or semi-trailers uncoupled from tugs.
Here it is important to note that, respecting the other laws that govern auto insurance, insurers can prepare their coverage. I recommend that you check your insurance policy for the full list of covered items.
Does third-party insurance cover property damage?
This is one of the third-party insurance coverage: it will cover material damage caused to third parties. This may include, for example, bodywork and painting expenses caused by a crash caused by the insured, as in the case of Ferrari, mentioned above. In addition, these material damages include the destruction of a house’s facade.
Does Third Party Insurance Cover Personal or Bodily Damage?
In this case, third-party insurance reimburses the amounts claimed by third parties who have suffered bodily harm – death or disability – or who have medical and hospital expenses due to the accident that was involved the insured.
Does third-party insurance cover moral damage?
In the last case of insurance for third parties, that of Moral Damages, it will guarantee that the judicial or extrajudicial indemnities that the insured may be ordered to pay for moral or aesthetic damages caused to third parties are borne by the insurer and keep the insured backed, too, in this case. It works as a supplementary coverage to Personal Injury.
How to trigger third-party insurance?
The first step taken when a traffic accident occurs is to check the physical condition of the occupants of the vehicles involved. If everyone is ok, the cars should be removed from the highway. Then, it is necessary to file a police report (BO) – many states make this document available online.
After issuance of the BO, the insured must contact the insurance company to communicate what happened, send some documentation, and request coverage. Then the insurer will guide you on the steps for sending the reimbursement and indemnification of those involved.
In general, the deadline for payment of compensation is 30 days. However, if there are pending issues or doubts regarding the claim, the insurer may request new documents and evidence. In this case, a new term is opened.
Does third-party insurance pay deductibles?
No, third-party coverage will provide you with all the support you need, without the need to pay the deductible. The only action the insurer takes is to deduct one point from the insured’s bonus class at the next renewal.
One of the details that deserve attention is the limited value of indemnity reimbursement. If this amount is exceeded, the difference is normally paid by the insured.
Finally, understanding how third-party insurance works is essential for the tranquility of policyholders. By following the tips and guidelines given in this article, we are sure that the insurance application process will be smoother in case something unexpected happens.
If you still have doubts, we have prepared a complete guide on what to do in case of a car or motorcycle crash.
How much does third-party insurance cost?
If you want to know how much third-party insurance costs, just get a free quote. we quote with more than 16 insurance companies and set up a plan according to your needs and profile.